FIANNA FÁIL REACTION:TDs and Senators from the Government parties have generally welcomed yesterday's €2 billion package of cuts, but some have also expressed concern privately about what they expect to be virulent opposition from public employees affected by the cuts.
Both Taoiseach Brian Cowen and Minister for Finance Brian Lenihan addressed a longer-than-usual meeting of the Fianna Fáil parliamentary party last night.
While there was no dissent expressed at the meeting, Mr Lenihan was asked many detailed questions about the implications of the new pension levy for public servants, especially teachers, gardaí and nurses. Most questions centred on the implications for take-home pay of those in the lower and middle-income ranges.
TDs who spoke to The Irish Timesin the wake of the meeting privately said they would be expecting an overwhelmingly negative reaction from public-service employees, including mass protests and possible mobilisation on the streets.
“There was general support for what the Taoiseach announced,” said one Fianna Fáil TD. “Equally, there was a recognition that we are going to get it in the ear. There is going to be widespread opposition to this and we have to be prepared for it.”
Another senior TD, who wished not to be named, said that many TDs have not yet looked beyond the announcement and figured out the implications.
“It looked like a good clean break. And it will be fine until the teachers start calling on the telephone and the HSE guys start complaining at clinics that it will really sink home.
“It’s going to be very tough. But I think everybody knew there was no choice. What I most worry about is how we are got to get the €4 billion in cuts next year. The whole thing will be fraught.”
Dublin North TD Daragh O’Brien said it was a tough decision, but it was a fair one. “When you compare public and private, it will be seen as fair. The contribution is fully tax allowable as well on the marginal rate.
“Obviously we know that it’s a tough decision. We all know that it will affect people’s take-home pay, but there was an absolute acceptance that it was fair,” he said.
Cork East TD Ned O’Keeffe said Mr Cowen had no choice and said he had praised what was the correct decision at the party meeting.
“We have been long enough criticising the man,” he said of Mr Cowen.
“Now he has made an effort to get the economy back on track. The Irish financial rating is very important and we need to hold on to our triple-A rating. If we lose that, it will cause terrible problems for us,” he said.
Senator Dan Boyle, chairman of the Green Party said the cuts were only the start of a process. “It’s only a band aid to ongoing surgery that needs to happen,” he said.